BUSN380 Week 3 Threaded Discussion – Hazardous to Your Health & Credit Card Balances

BUSN380 Week 3 Threaded Discussion – Hazardous to Your Health & Credit Card Balances

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Using the Internet, locate a source that identifies the number of personal bankruptcies that have occurred in the U.S. during a relatively recent time period. Locate and report the results of Internet (or other) sources that assess the role played by credit card debt in relation to personal bankruptcies declared. According to Bloomberg Businessweek , the rise in bankruptcy filings is largely attributable to the combination of rising consumer debt and low savings rates. As consumers spend more and save less, the potential for crippling debt rises significantly. Moreover, if consumers do start spending less, this may have a negative impact on investments in business, another key factor in economic recovery. Poor consumer spending habits are further exacerbated by the shaky employment situation. In one financial blog, http://www.thedigeratilife.com/blog/index.php/2007/03/10/3-top-reasons- why-people-go-bankrupt/ , they cite ill or failing health a s being responsible for more than half of bankruptcies filed nation-wide. Contributors to the website argue that you may have all the resources you thought you needed to build your financial buffers, but when unexpected disasters befall you one after another, those resources dwindle and vanish . Medical and health problems cause a legion of other issues such as unemployment and large medical bills that can easily cripple your bank account. I found a special report on CNNMoney.com about the ironical fact that three years after the passing of new legislation aimed at reducing personal bankruptcies, there were one million new filings as 2008 drew to a close. http://money.cnn.com/2008/10/24/pf/bankruptcy_filings/index.htm? postversion=2008102711 The report blames the housing meltdown, credit crunch, and the global economic downturn for the increase in bankruptcies indicated in figures from the Administrative Office of the U.S. Courts: 934,009 from June 2007 to June 2008, an increase of more than 28 percent from the 727,167 petitions filed in the same period a year earlier. The Long Island Bankruptcy Blog – you know it’s a big problem when there is a regional blog named after it, states that in 2009 there were a total of 1,473,675 bankruptcy filings in the U.S. (an increase of 32% over 2008). 96% of them were filed by consumers. The specific breakdown
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of the 20,508 filings in Long Island district for the period ending September 2008 was: 16,790 Chapter 7 cases, 247 Chapter 11 cases, and 3,469 Chapter 13 cases. http://longislandbankruptcyblog.com/personal-bankruptcy-filings-continue-upward-trend/ Another bankruptcy blog, http://www.totalbankruptcy.com/blog/tag/bankruptcy-statistics/ Indicates the situation continues to worsen, with consumer bankruptcy filings during the first half of 2010 rising to 770, 117 -- a 14% increase over filings made in the same period the year before.
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This note was uploaded on 05/27/2011 for the course BUSN 380 taught by Professor Bloch during the Fall '10 term at DeVry NY.

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BUSN380 Week 3 Threaded Discussion – Hazardous to Your Health & Credit Card Balances

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